Perrigo rejects Mylan's raised offer

Perrigo on Wednesday rejected an increased offer from Mylan, under which it proposed to acquire the company for $75 in cash and 2.3 Mylan ordinary shares per Perrigo share. Perrigo said that the latest unsolicited bid "continues to propose a price lower than the previously rejected proposal," adding that shareholders should "take no action in relation to the offer."

In rebuffing the latest bid, Perrigo repeated its prior criticism that Mylan's share price has been inflated following speculation that Teva was interested in a takeover of the Dutch firm. Last week, Perrigo rejected Mylan's formal offer to buy the company for around $33 billion, consisting of $60 in cash and 2.2 Mylan ordinary shares for each Perrigo ordinary share.

Perrigo said at the time that the bid was actually lower than Mylan's April 8 non-binding proposal of $205 per share of cash and stock, or about $28.9 billion, which its board already dismissed as too low. Perrigo said that based on Mylan's share price of $55.31 on March 10, Perrigo's initial offer was actually valued at $181.67 per share. Based on the March 10 share price, the drugmaker valued Mylan's latest offer at $202.21 per share.

However, Mylan said that the latest bid represents $232.23 per Perrigo share. Mylan executive chairman Robert J. Coury said the company has made a "'hell or high water' commitment" to close the deal and obtain antitrust clearance. Coury added "this is a transaction that can, and will, be completed and create a powerhouse company that will be an engine for growing shareholder and stakeholder value."

Earlier this month, Teva offered to acquire Mylan for $82 per share, or about $40 billion. Mylan's board dismissed the proposal, with chairman Robert Coury describing Teva as a "poorly performing, troubled company" with a "dysfunctional culture" and "consistent underperformance."

For related analysis, see ViewPoints: Perrigo to Mylan: 'your move' and ViewPoints: Agree to disagree – will FTC considerations scupper a Teva-Mylan deal?

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